NEWS AND VIEWS ON REAL-TIME UNIFIED COMMUNICATIONS

Avaya Crashes the Video Party For those interested in unified communications and for integration of UC with visual collaboration tools, Avaya has come forth with a next-generation user experience and interface that combines to demonstrate the company’s commitment to be a mainstay player in the enterprise rich media communications market. Under the moniker of “the Avaya Flare Experience,” Avaya has introduced a suite of hardware and software capabilities that integrate voice, video, data, and chat in a way that is sure to intrigue forward-looking enterprise buyers. The thrust by Avaya is based on a multiple new products, including:  The Flare experience: This is a whole new interface that combines multiple modalities, a touch interface, presence and directory services, access to social media, instant messaging, calendaring, voice and audio conferencing, web conferencing, as well as videoconferencing, etc. The Flare experience features a central spotlight that highlights active communications. Communications modalities can be invoked once the user drags a contact into the central spotlight or up to five other spotlights which can be used to engage in multiple simultaneous interactions or break out into side groups from a conference. When a contact is put into a spotlight, Flare's mechanisms automatically search for recent communications with that person including recent emails, IMs, phone call logs, calendar events, and so forth. Much in the way a call center uses pop up windows to present information about a person calling in, the Flare experience gives users context around the people they are communicating with.

The very powerful and flexible and unique Flare experience

Flare's capabilities are best seen on Avaya's new Desktop Video Device, an Android-based tablet communicator sporting an 11.6" diagonal touch screen. Expect to see this interface and experience run across a spectrum of Avaya communications platforms including PC

The Wainhouse Research Bulletin Page-1 Vol. 11 #19 September 23, 2010

endpoints, third-party tablet devices, desktop telephones, and . The tablet supports drag-and-drop voice and video calling and conferencing, with the ability to separate from a call for sidebar interactions via voice, email or IM, and subsequently rejoin the conference without interrupting the call in progress. It is all based on Avaya Aura 6.0, Avaya's SIP-based communication manager.

Avaya’s A175 Android-based video tablet Avaya’s room videoconferencing systems

Other announcements from Avaya include:  New software for Avaya 9600 deskphones that enables users to have sidebar chats while talking on the phone or to find experts from a variety of directories. An enhanced Avaya one-X Communicator version 6.0 now supports SIP HD video.  Five hardware-based room videoconferencing systems based on what is obviously an OEM agreement with LifeSize. The key to Avaya’s entry into the group videoconferencing market is high quality at reasonable pricing. These units all integrate into Avaya Aura’s SIP call control mechanism, making video endpoints another device seamlessly connected to the PBX, the voice mail system, telephones, softphones, and the new Video Desktop Devices.  A Collaboration Server, which is an all-in-one server that allows companies that do not have Aura 6.0 to immediately begin rolling out Avaya’s tablet and group videoconferencing solutions. In a single device, Aura Collaboration Server provides Aura 6.0, bandwidth management, administration, conferencing scheduling, monitoring and reporting capability, and the ability to interconnect with H.323 systems. Here’s What I Think: This is a huge leap forward for Avaya and gives the company a very strong rich media collaboration story that spans from Avaya desktop to Avaya room. The Flare experience is something you have to see to truly appreciate its unique and charming characteristics, but I think next-gen users will find Flare to be very compelling. When you combine the new products with the company’s existing Global Services organization and the managed video capabilities acquired via the Nortel acquisition, Avaya’s partnerships with Microsoft and HP (and yes there is still some competitive overlap), you have an emerging unified communications, visual collaboration giant coming to the enterprise communications party. On another note, Avaya was supposedly a key strategic partner of Polycom; so how did LifeSize crash this party? Unlike HP, where silo’d organizations struck separate deals with Polycom and Vidyo, Avaya isn’t likely to claim the left hand didn’t know what the right hand was doing.

The Wainhouse Research Bulletin Page-2 Vol. 11 #19 September 23, 2010

Here’s What Brent Kelly Thinks: Avaya’s new Flare experience provides an interface one would expect to come from a company like Apple. Having had hands-on with this device and personally seeing it operate, I find it to be a unique and compelling interface with the sort of “coolness” factor I feel about my Android . The remarkable thing is that while it has so much functionality it is so easy to use. I wish an interface like this was available for group and executive video conferencing devices. I anticipate that we will see the Flare experience move into the conference room where Android or iPad tablet devices will be able to control video conferences, including application/presentation sharing, with the same interface. (Radvision displayed an iPad application like this at the WR Summit in Boston last summer.) I saw the Cisco Cius when it was announced, and at that time the interface was not really shown. All we saw was the device with video on the screen. Cisco will have to stretch to make an interface as compelling as what we saw on the Avaya Desktop Video Device. Just by way of comparison, you can see the characteristics of each device in the table below.

 WR Forum: Avaya Flare

a Cisco Cius Avaya DVD

Screen Size 7" 11.6" Operating System Android Android Display Resolution 1024x600 1366x768 Camera in Front Bezel Yes Yes Camera in Back Bezel Yes No Max Video Quality 720p x 30 fps 720p x 30 fps Front Camera Digital Zoom 2x No Zoom Telepresence Integration Cisco Telepresence Yes, w/Standards-based Units Wireless Standards 802.11 a/b/g/n 802.11 b/g/n Mobile Standards No (3G/4G in development) Yes, via USB (3G/4G drivers in test) Bluetooth Yes Yes Presence Yes Yes IM Yes Yes Ethernet (in base) 10/100/1000 10/100/1000 Weight 1.15 lb 3.25 lb Memory 1 GB RAM/32 GB Flash 1GB RAM/4GB Flash USB Ports 3 3 HD Audio Yes Yes Signaling Protocols SIP SIP Video Codec H.264/AVC H.264, H.263 Battery 8 hours 3 hours min. with full HD video running; longer on standby Applications Cisco Quad Aura CM/SM Integration Cisco WebEx Avaya Voice, Video, IM & Presence Cisco Show and Share Unified Contacts Enterprise Calendar & Email client Avaya Contextual History Android Browser & Gallery Microsoft Document Viewer, Enterprise presence w/MS Lync support List Price Sub $1,000 $3,750 (Street price ~$2,000)

The Wainhouse Research Bulletin Page-3 Vol. 11 #19 September 23, 2010

Q2-2010 Group Videoconferencing Market Statistics Some surprising statistics for Q2-2010 as industry growth quarter over quarter was largely negative, although annual growth rates remain solid given the weak economy in 2009 (details in our full report)

Multi-codec Single-codec Executive Total Multi-codec Single-codec Executive Total Q2-2010 revenues revenues revenues revenues units units units units

Q-Q Growth -8.3% -6.8% 2.6% -6.4% 0.6% -6.0% -1.5% -5.3%

Y-Y Growth 1.5% 11.8% 18.4% 10.3% 8.7% 29.1% -3.1% 23.1%

Enterprise Group Videoconferencing Endpoints Revenues Units

Other Other Cisco 24% 29% 31% Cisco 45%

Polycom Polycom 31% 40%

New Wainhouse Research Content

Subscription Document Title & Link Description

Polycom, Microsoft and the End of Insight and analysis into the recently announced VCP Agnosticism Microsoft / Polycom strategic UC relationship.

A Test Drive of the Damaka Amadeo Insight and analysis into the capabilities and VCP Mobile Collaboration Platform performance of the Damaka solution. Quarterly report providing market data Videoconferencing SpotCheck - (unit sales, revenue, market share, regional VCP Q2 2010 breakdown, etc.) for VC endpoints and infrastructure products. Explores the nuances behind why certain Differentiating Higher Education and EDU technologies play better in certain environments

Primary / Secondary Applications – and predicts how this may change over time. Analyzes how social media is used in education, Social Media: Impact on Education and reviews key research findings, and concludes by EDU

Training suggesting implications for educators and vendors.

The Wainhouse Research Bulletin Page-4 Vol. 11 #19 September 23, 2010

News in Brief  Microsoft has announced that its Office Communications Server (OCS) / Introducing one of the Communications Server “14” product, often WR Bulletin Sponsors dubbed CS14 for mysterious reasons, would be Applied Global Technologies (AGT) is the branded as Lync Server and the client fastest growing privately held Managed Video application to be known as simply Lync (not Services provider in North America. With over Communicator). According to much of the 17 years of experience in the video industry, chatter online, this demarcation is truly the point AGT is a leader in developing technologies and delivering services to business, where the PBX takes on dinosaur status and government, education, and service providers. where Microsoft becomes your enterprise voice AGT removes the cost and complexity of vendor. Lync (rhymes with sync) is expected to deployment and management for desktop, reach GA status late in 2010. conference room, and telepresence suite  Yahoo is working to bring videoconferencing to video conferencing. Android and Apple iPhones. Yahoo showed off AGT’s innovative, award-winning technologies and services include FATHOM HD for video the capability (3G and wifi) as part of a product testing and management, ENCORE for all-in- demonstration of Yahoo Messenger 11 at the one H.323 bridging, desktop videoonferencing, company's Product Runway at its California streaming/recording, scheduling, and multi- headquarters. network traversal, and ANALYTICS, a web-  BurstPoint Networks has burst upon the rich based reporting/analysis tool. media communications scheme with the PerfectMeetings is AGT’s comprehensive managed video service available as either an company’s BurstPoint Video Communication on-premises or off-premises deployment with Platform (VCP, not to be confused with WR’s a “no cap-ex” option. own Visual Communications Practice), a platform that enables customers to deploy a solution for capture, distribution, management, viewing and usage reporting of live and archived video content. The platform www.appliedglobal.com encompasses at least five hardware and software different elements, including VCP Conference Point, a capture point for streaming video from a videoconferencing system. BurstPoint is a new company on the collaboration and rich media communications scene, but much of the current technology is based on BurstPoint’s taking over the assets of Starback. Also, VP of engineering is Art Leondires, familiar to many of us in the audio and video conferencing market who can remember Octave, Voyant, MultiLink, and Picturetel.  Dimension Data, in the process of being acquired by Nippon Telegraph & Telephone (NTT), itself acquired UK-based videoconferencing channel partner and managed services provider mvison.  Digital media tools vendor Telestream has acquired Anystream, a video production and management company.  Polycom (see People & Places below) announced a slight reorganization that combines its video, telepresence, and voice development units into a single R&D organization. The company also formed three new lines of business – enterprise and government / public sector; service provider; and SMB.

The Wainhouse Research Bulletin Page-5 Vol. 11 #19 September 23, 2010

 Still resolved to break into the The WR Bulletin would like you to join us videoconferencing market in thanking our 2010 sponsors: outside China, Huawei announced an authorized distributor for Spain and Portugal, Datalux.  MPLS-network provider Masergy

signed on videoconferencing channel partner, Verrex. The fine print: Sponsorship of the WR Bulletin in no way implies that our sponsors endorse the opinions expressed in the WRB. Nor does it imply  VisionsConnected is now that the Bulletin endorses their products or services. We remain an equal opportunity critic. offering an OCS gateway as a service for its videoconferencing customers.  High Speed Video (HSV), a provider of software-based, enterprise-grade video communications as an end-to-end managed service, has expanded its platform to support advanced collaboration features in HSV ClearVision, the company’s desktop video communications software. ClearVision is designed to work with any web cam equipped PC and now includes instant messaging, desktop sharing and document sharing.  Wainhouse Research is now solidifying plans for our annual CSP Summit, to be held at the Hilton Logan Airport, October 12, 2010 (see calendar below). The theme for this year’s meeting is “What’s Next: How the Collaborative Workplace Creates a Drive for New Services.” For details and to register visit www.wainhouse.com/cspsummit. This year’s event is sponsored by Compunetix, RadiSys, Aonta, and NetConnect.  Vidyo announced VidyoCast, a suite of broadcast products and services that enable TV networks and stations to employ cloud-based solutions to expand field operations and production capabilities with substantial cost savings over other approaches. VidyoCast offers an array of seven software and hardware modules to achieve SD/HD quality video transport, remote contribution, sports production, net return, Master Control back up and disaster recovery.  Glowpoint has signed an agreement with Equinix to offer carriers direct access to Glowpoint's managed video services and B2B connectivity through the Equinix's Carrier Ethernet Exchange.

Conferencing & Collaboration Events

When & Where Who & What October 3-6, Ft. Lauderdale, FL VCI-G annual conference October 12, Boston, MA Wainhouse Research CSP Summit - North America November 2, Cape Town and Point Nine peer networking conference Johannesburg, South Africa

The Wainhouse Research Bulletin Page-6 Vol. 11 #19 September 23, 2010

People & Places AVI-SPL, Tim Riek, service operations team leader Whitlock Group, Julian Phillips, VP Managed Services Mitel Networks, Mike Guerrero, Strategic Consultant Aethra.net, Chris Romei, Sales Director Seatankers Holding Company, Fredrik Halvorsen, Sr., Executive Impact Europe, Terry Wilson, Business Development Director, Malcolm Savage, Sales Director Polycom, Joseph Burton, SVP, Chief Strategy and Technology Officer, General Manager Enterprise and Service Provider; Sudhakar Ramakrishna, SVP and General Manager Products, and Chief Development Officer; Susan Hayden, EVP and General Manager, Polycom SMB; Alan Rudolph, SVP, Global Services; Gary Rider, President, Europe, Middle East, and Africa (EMEA; Ashley Goldsmith, SVP, Human Resources.

Joe Sudhakar Susan Alan Gary Burton Ramakrishna Hayden Rudolph Rider

One on One with Ken Hayward, CEO, Vcopious WRB: OK, in 60 seconds or less, who is vcopious? KH: Vcopious is virtual environment software that enables companies to connect with communities globally via a proprietary, fully customizable software solution. The vcopious platform leverages real time social networking, lead generation and information aggregation through tracking and analytic metrics. This enables companies to connect seamlessly with employees, customers, clients and constituents. WRB: Where did the name come from? KH: We wanted a name that really captured the flexibility of our virtual software. After a few brainstorming sessions, vcopious was born. The software literally creates copious amounts of virtual opportunities for marketing managers and CIOs to highlight their product, service or brand. The name also speaks to the copious amount of benefits companies receive from the software. WRB: You’ve been out of our industry for a while; many of the readers may not know who you are; so who are you?

The Wainhouse Research Bulletin Page-7 Vol. 11 #19 September 23, 2010

KH: I joined vcopious as CEO in May 2010, but I’ve been a serial entrepreneur in the technology and conferencing industries for past 20+ years. Previously, I was CEO of Redlasso, a digital media syndication platform, and founder of V-SPAN Inc., which was acquired in 2004 and later became part of BT Conferencing. Prior to that, I also co-founded Advanced Voice Systems – which was later acquired by MCI – among other technology and conferencing related ventures. WRB: How has the industry changed since you left? KH: Interestingly, not much has changed. Many of the conversations we had 7-10 years ago about the need for collaboration and effective business process automation are still just as relevant today as they were back then. As an example, the software we wrote for VSPAN (now BT Conferencing) in 2003 is still recognized as the industry leading software management platform by many customers. My feeling has always been that conferencing in collaboration is most effective when incorporated with business process automation and integrated workflow. Once you integrate collaborative thinking with business process automation, you are able to streamline workflow and create efficiencies in your business. What is changing now is that the tools for collaboration and integration are coming to life. Today vcopious can create sticky environments that automate and integrate all aspects of a company, including social media networks, conferencing, media, video, etc. all in one environment. This integration streamlines business processes in way that simply wasn’t possible before. WRB: How do you see vcopious addressing the needs of the conferencing industry? KH: Like many other industries today, the conferencing industry is under increased pressure to streamline their business processes, lower costs and increase ROI. The vcopious software enables companies to do this by providing seamless integration of multiple marketing channels into one virtual environment, making it easier to track leads and gain market insights, ultimately reducing costs. For the first time, companies can create sticky environments that attract new customers from the moment the software is launched. WRB: What are the basic functions that you are providing and the applications that you are addressing for your customers? KH: The vcopious software enables companies to connect virtually with their global communities in a rich, 3-D virtual environment. There are literally thousands of ways to utilize the software to enhance the virtual customer service experience. For example, a company could use vcopious for virtual product launches, employee focus groups and training, shareholder briefing rooms, or virtual trade shows with unlimited participants. A bank can setup an environment where customers can check on the status of their mortgage application online, or an accounting firm

The Wainhouse Research Bulletin Page-8 Vol. 11 #19 September 23, 2010

can set up an event where clients from across the country can “meet” and interact with each other as well as the firm executives. The possibilities are endless. WRB: How is it different from Second Life? KH: Second Life is a corollary to what we’re doing, but Second Life is for consumers, not businesses. vcopious does for businesses what Second Life does for consumers. As an enterprise software platform, we leverage the benefits of virtual connectivity with real metrics and analytics companies can use to understand how their are resonating within their respective communities. WRB: So, your business model is to sell software to enterprises. For a virtual environment like you are developing, this would seem to go against the grain. Aren’t most customers looking for cloud-based services for this kind of thing? KH: The beauty of the vcopious platform is that it can be both On-Premise and SaaS- based – it is a flexible platform which allows companies to deploy each instance in a manner that meets their evolving needs. WRB: How much work does a customer have to do once he/she has your software? KH: There is almost no legwork to be done from an IT perspective, as the software is designed to integrate seamlessly into the existing enterprise infrastructure. Companies can integrate with their e-commerce platform, CRM, telesales and CMSs with vcopious’s built-in API construct. Social networks like LinkedIn, Facebook, Twitter or other corporate social networks are also accessible directly from the software, so customers or clients can interact using platforms they’re already comfortable with. From a marketing perspective, CMOs and CIOs have a limitless canvass from which to build their brand identity quickly and easily by using one of vcopious’s customizable business environments. WRB: Can you give the readers some idea on the cost of your software. I’m sure your pricing model is complicated. KH: It’s pretty simple really – we offer a variety of license options designed to fit each client’s needs. Our perpetual license offers potential cost savings of about $1 million for active users, and sells for a similar amount. The enterprise agreement allows deployment with unlimited instances for purchases in 2010. However, companies that want an a-la- carte option can utilize our single occurrence SaaS licensing option. WRB: What exactly makes you think vcopious will succeed? KH: The reality is that the virtual environment marketplace is on a very strong upswing because it adds value and expands reach while reducing costs. It’s more than just about saving money on expensive in-person events and meetings, which is obviously important. By using vcopious, companies can access real time information 24 hours a day, seven days a week, while allowing customers or employees to interact with content on a continuous basis. What truly sets us apart from other virtual environment services is the company’s seamless integration with existing IT infrastructure, and the fact that it is the first virtual environment software solution that can be installed behind a company’s firewall.

© 2010 Wainhouse Research 34 Duck Hill, Duxbury, MA 02332 USA Tel +1 617.975.0297 Comments to: [email protected] PR to: [email protected] Feel free to forward this newsletter to colleagues. Free subscriptions: www.wainhouse.com/bulletin

The Wainhouse Research Bulletin Page-9 Vol. 11 #19 September 23, 2010